Setabay Private Hard Money Lender

Thursday, April 4, 2019

Qualify for Bigger Arizona Hard Money Loans by Using Your ARV

Lots of people qualify for Arizona Hard Money Loans to buy homes and make repairs, but what if we told you there's a way to qualify for more funding? You can, and it's by knowing your after repair value (ARV).

Arizona Hard Money Loans, also called asset-based loans, are loans that are secured by a property. Many lenders will only give you around 65 percent of the total value of the given asset. In other words, a property appraised at $100,000 could secure a loan of $65,000.

However, this is where things can get hairy. An appraisal works if the house is in good condition, but what if your plan is to buy the house to renovate it and resell it? You wouldn't be able to get the funding you need because the house's appraisal will show what the house is worth before the rehab.

That's where your after repair value comes in. If you can show the lender that the after repair value is much higher, you may be able to get more funding. So how do you do this?

Figuring Out Your After Repair Value

There are a few ways to zero in on a more accurate picture of your after repair value. First, gather all the relevant information — the square footage, the exterior condition and the basic specs of the house (bedrooms, bathrooms, special features). Now find 10 properties with similar features and of a similar size that sold in the last six months in the immediate area. It's important that you find matching properties that are in good condition. Doing so will allow you to show the lender what the property's potential is.

Of course, you should also use professional appraisers and have them give you an estimate for after the rehab is done on the house. Compare that estimate with your own experience in the business and bring that info to the hard money lender. Remember, you want to sell the lender on the potentiality (the future value) of the property. The more data you have to show this, the better your chances for securing more funding.

Getting a Arizona Hard Money Loan in Arizona with a Solid ARV

Once you've got your ARV — and all the convincing data to back it up — you can go to a hard money lender in Arizona to apply for a Arizona Hard Money Loan. If you're thinking about getting one and have your ducks in a row, give us a call and see how we can turn your dreams into reality.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Do Texas Bridge Loans Really "Bridge the Gap" Between Homes?

Searching for a new home can be stressful, and if you need to take a loan out to do so, there can be some really strict contingencies on what you can do before you sell or move. Keeping all of your options open and considering “bridging the gap” as a possibility may be the best option for you and your situation.

Norman lived with his mother, but it was time to find a new home. Their current home was small, and as her medical needs increased, he wanted to find a new space that suited both of them. However, in most of Norman’s research, he found that there were some pretty strict requirements that he sell his current home first. It seemed that most lenders wanted the assurance that their borrower would be able to pay them back. While Norman understood, it wasn’t reasonable for him to sell his current home first. It would really ease the transition process on him and his mother if he could find the new home and work on selling their current home next. Fortunately for Norman, he was able to qualify for Texas bridge loans.

What Does “Bridge the Gap” Mean?

Norman soon found that Texas bridge loans were referred to in a variety of terms. A reference to swing loans, wraps, or “bridging the gap” all referred to the same thing. If one were to go into a loan agreement by “bridging the gap,” it would require putting a down payment on your current home so that you can fund your next purchase. This option alleviates any major contingencies and contracts that can put pressure on someone to sell their current home first.

As Norman’s mother was older and dependent on others for support, her having the opportunity to completely eliminate a transitory living space between moves was very attractive. It’s something that many people find appealing, as relocating can be much easier without having to rent out temporary living spaces or storage units. Norman was looking forward to learning more about the costs of “bridging the gap.”

Is “Bridging the Gap” Right for You?

Obtaining Texas bridge loans requires a strong credit score and a reasonable debt to income ratio. Needless to say, they aren’t perfect for every person in every situation. They require taking out a mortgage on two homes, your current and your new, and also have high interest rates. Additionally, they are meant to be paid back fast. Compared to other loan options, there is a short repayment period. This makes sense, however, as the goal would be to sell your current home as soon as possible. If your home can compete on the market, this may not be an issue. Knowing the realities of how it will fare, though, is something to consider.

Norman was thankful he qualified to “bridge the gap.” He was able to find a home that provided more for his current living situation, and it was less stress on his mom to have to bear more than one major move.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Who are Texas Residential Hard Money Lenders?

Public lenders have high standards and requirements surrounding your financial history that can disqualify you from loans when you really need them. If this is the case for you, read more below to see how you can make the best of working with Texas private money lenders, so you can finance the property of your dreams.

Seeking out a loan provider can be exhausting, and the disappointment in rejections can make it easy to lose motivation. However, public lenders are not the only resources there are for loans. While your local bank or credit union may seem like an easy option, they are likely to reject people who do not have a solid credit score or a reasonable debt to income ratio. Because of this, many people are turning to private lenders.

Residential hard money lenders in Texas are private money lenders that offer speed, but, most importantly, they flexibility in their approval process, meaning they can approve more people than banks can. This means they can approve some borrowers who are being disqualified from public bank loans.

What are the benefits of Texas private money lenders?

The most obvious benefit of residential hard money lenders in Texas is the opportunity to be approved with less strict requirements than public lenders. Instead of considering your financial history as top priority, they considered the collateral the most important factor. The value and potential of the home is considered before the creditworthiness of the borrower is considered. Now, the creditworthiness of the borrower is still considered, however, it is not held as highly as the factors regarding the property. Texas private money lenders can offer a type of flexibility and transparency in this way, because they will be real with you about the potential of the property.

Are Texas private hard money lenders right for you?

While residential hard money lenders in Texas offer a lot to offer, it is important to know a few things that may not make them ideal for your particular loan needs. The first thing is that they have high interest rates, and they can be as much as five percent more than what is asked by other lenders on the market. Some people who need money fast can afford to lose a pretty penny, but, combined with the short repayment period, they may not be for everyone.

Particularly, lenders who offer hard money work great with builders and home renovators. Builders and renovators are usually working on a fast timeline and, with the goal to sell the property as soon as possible, with what is hopefully a significant profit, the short timeline literally lends itself to them. The high interest rates just end up being an extra cost that pays for the speed of the loan, which can be really important if they are bidding on a competitive property.

Private hard money lenders are not for everyone, and not all of them are reliable. If you choose to move forward with a private lender, be sure that you understand all the terms to the loan agreement and the terms fit your particular situation.

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Supercharge Your Income with Rental Property Loans

Ever thought about getting a property that works for you? It might be easier than you think. How? Rental property loans in Arizona. Let's take a look at how they work.

Most people dream of having money coming in every month that doesn't require them to clock in and clock out a job they hate. Most people also think that the only way to do that is to have a ton on money in the bank to buy a rental property. If you've ever thought that way (and it's stopped you from taking action), we've got awesome news for you! Not only is it within your reach, but it's also probably easier than you think.

You might be saying you don't qualify for a bank loan so there's no way you can buy a rental property. And you'd be right. Banks have rules, regulations and guidelines for deciding to whom they loan money. If you've had a short sale or foreclosure on your record, you'll most likely be denied. If your credit score is below their mandated minimum, you're out of luck. If your bank account isn't as large as you'd like, you may get rejected.

Thankfully, the bank isn't the only place to get a rental property loan. Aspiring landlords get funding for their projects all the time from private investors. These Arizona Hard Money Loans aren't subject to the same regulations and guidelines, so lenders can decide to take a risk on whomever they want. Even if you have blemishes on your financial history and a less-than-desirable credit score, you can have a dream and a plan and get approved for funding.

How Fast Can You Get a Rental Property Loan?

Here's where Arizona Hard Money Loans really shine. With a bank loan, it might take a month or more to see your cash. Without stringent restrictions, you can get approved in a matter of days and have your money within a week or two. And, in the real estate business, being quick can sometimes give you an amazing advantage over other offers.

Where to Get a Rental Property Loan in Arizona

Now that we know that you can get approved for a loan to buy an income property, it begs the question — how do you go about getting one? Well, you're in the right place. Level 4 Funding has been doing hard money rental property loans for decades, so we have the experience to help you through the process. Contact us now to find out how we can work together.

How Helpful Are Residential Hard Money Lenders in Texas?

Obtaining traditional funding for a loan is determined by a variety of things: credit score, debt to income ratio, reliability, creditworthiness—the list goes on. If you are seeking funding for a loan, you should be aware of all possibilities including untraditional routes like residential hard money lenders in Texas.

Texas hard money lenders usually consist of private companies and investors. They are alternative options to people who cannot receive traditional funding by public lenders like banks and credit unions. Private lenders can offer money vast on a variety of different properties including, but not limited to, residential homes, apartments, and condos.

So, what’s the deal with Texas hard money lenders? And how can they help you?

What’s so Great About Private Lenders?

Residential hard money lenders in Texas offer a few attractive qualities that are unmet by most public lenders: speed, transparency and flexibility. These Texas private money lenders are able to do what banks cannot by beginning the loan process almost immediately. If they can’t get it started the day of, it’ll only take as long as 10 days while banks usually need between one and two months to get the process started.

Additionally, Texas private money lenders offer transparency and flexibility that banks do not. Private lenders focus on the property’s collateral. This means they evaluate the property’s value and potential, and how that affects the risk in investing. Banks, however, will consider the borrower’s creditworthiness first. This consists of analyzing the borrower’s financial history and seeing if it exceeds banks standards. Private lenders also consider creditworthiness. However, private lenders consider collateral first. So, they make great options for people with an imperfect credit score who are in need of financial funding fast.

Which Scenarios Are Best for Hard Money?

Hard money is not for everyone, and, before you jump right into any hard money agreement, there are definitely a few things you should consider first. Texas hard money lenders have high interest rates—and, sometimes, they can be as five percent more than a traditional or public lender. Some people can afford this, and some people don’t mind paying the extra costs if it guarantees speed. For example, architects and home renovators rely on speed if they are bidding on a particular property on a competitive market

Additionally, hard money works great for them because of the short repayment period. With the goal being to build, renovate and then put on the market for what is hopefully a quick sale, the short repayment process lends itself perfectly to builders and renovators. However, people seeking hard money for long term projects may not find it as easy to work it into their timeline. Still, hard money can be used for other things including preventing foreclosures or working on short timelines.

If you are interested in residential hard money lenders in Texas, do a search of private investors in your area. Being rejected by a public lender, or even by a private lender, doesn’t mean you won’t find funding from another investor. Be smart about your needs as a borrower so that you can make the decision that is best for you.

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Using Fix and Flip Loans to Make Money Flipping Houses

There are some people out there who think that you can only make money by flipping houses with bank loans. However, not only can you make money with private fix and flip loans, there are times when they actually work better than bank loans. Let's look at how.

When most people look into flipping a house, they go to the bank to get financing. They jump through the bank's many hoops, drop a bunch of their capital on fees and sometimes wait for a month or more to get financing together. Some people do it because it works for them and some do it because they think it's the only way to go about it.

Here's the good news — going through the big, inflexible financial institutions isn't the only route. Hard money fix and flip loans are a viable option, too. Here are two major reasons why:

Arizona Hard Money Loans Are Flexible

At the bank, you'll be asked to have an almost spotless financial history, a sizable amount of money in the bank and a credit score that meets their minimum. If you don't fit in their narrow box, you're out of luck. Arizona Hard Money Loans use private money and operate largely outside the "system," so while they take some of those same things into consideration, they're not bound by them. That means a hard money lender has the freedom to work with you.

Maybe your credit score isn't great or you've got some issues in your past, but you've got a vision and experience doing flips. In the hard money business, you can make your case and get the money you need to make your vision come to fruition.

Hard Money Fix and Flip Loans Are Fast

When you go through the big banks, the red tape can be debilitating. There is all manner of regulations they have to adhere to, and they have complicated underwriting processes. As a result, you might wait a week or two to hear about your approval and then another month before you see the money in your account. Not so with hard money. With very few hoops to jump through, you can get approved in a day or two and have the cash in hand within a week or two.

And we don't have to tell you how important speed is in the flipping game! If you're interested in seeing if a hard money fix and flip loan might work for you, give us a call and discuss your options today.